President-elect Donald Trump's proposal to cut taxes on Social Security benefits could provide tax relief to millions of Americans, with significant savings for high-income earners. However, experts warn that the plan may have long-term consequences, potentially rendering the Social Security program insolvent within just six years.
According to data from the Social Security Administration (SSA), over 72 million Americans received Social Security benefits as of October 2024, making the programme a critical income source for retirees. Presently, nearly 40% of retirees pay federal taxes on Social Security benefits, with up to 85% of benefits taxable based on income thresholds. Trump's tax cut proposal aims to alleviate this burden, particularly for wealthier recipients.
